Ch 11 Summaries

Question 1

For most sales of real property, the escrow agent must report the ___ proceeds to the Internal Revenue Service on Form 1099-S.

Answer 1

Gross

Question 2

Can the escrow agent charge the parties a fee for filling out Form 1099-S?

Answer 2

No

Question 3

If a closing agent receives more than ___ cash in a transaction, that payment must be reported to the IRS using Form 8300.

Answer 3

$10,000

Question 4

To comply with the Foreign Investment in Real Property Tax Act, an escrow agent must generally withhold __% of the amount realized from a property sale if the seller is not a U.S. citizen or resident alien.

Those funds must be forwarded to the ___

Answer 4

10%

IRS

Question 5

The Real Estate Settlement Procedures Act (RESPA) requires institutional lenders to provide ___ mortgage borrowers with information about closing costs.

Answer 5

residential

Question 6

RESPA applies to most residential mortgage loans made by __ lenders, except business, agricultural, or commercial loans, loans for purchases of __ or more acres, loans used to purchase vacant land, construction loans, and loan assumptions where the lender’s approval is not required.

Answer 6

institutional

25

Question 7

RESPA =

Answer 7

Real Estate Settlement Procedures Act